Reverse Mortgage Uncertainty Causes Freeze in 55+ Community
Reverse mortgages in some of Arizona's 55-and-up communities are still at a stand-still despite efforts from the public and amended bylaws, according to a recent Reverse Mortgage Daily report.
"Residents of the Sun City West active adult community, about 30 miles northwest of Phoenix, got a glimmer of hope in May when their governing body rewrote a bylaw to comply with Federal Housing Administration guidelines," according to RMD.
"This change should have eased the path for residents to open Home Equity Conversion Mortgages, but the Department of Housing and Urban Development responded by saying it was pending review."
There looks to be some confusion on whether or not the HUD will be reviewing the changes. According to the report, the HUD stated they would review the changes in 2016, however, they then retracted the revision in 2018.
Meanwhile, folks are waiting once more for a revision following the "pending review" response from the HUD once again.
"It’s a tragic problem that could be fixed with a pen,” said Michael Thomas, a reverse mortgage specialist with V.I.P Mortgage, Inc. in Peoria, Arizona, according tot he report.
“It’s tragic because people are actually suffering. People are actually having trouble surviving.”
To learn more about the reverse mortgage struggles in Arizona, click on the image above.